Legislation update: certain provisions of the Employment (Allocation of Tips) Act 2023 came into force on 31 July 2023

The Employment (Allocation of Tips) Act 2023 is expected to come into force in May 2024. In readiness for this, the Secretary of State has exercised the power under the Act to make regulations.

The first of these regulations (the snappily titled Employment (Allocation of Tips) Act 2023 (Commencement No 1) Regulations2023) have brought into force sections 1-12 of the Act. The purpose of this is to enable the Secretary of State to issue the Statutory Code of Practice (“Code”) which as we explained here will set out the measures that are to be followed by employers. The code itself is expected to be developed towards the end of the year and to be subject to a formal consultation.

The making of these regulations now tends to suggest that the Government is on track for the Act to come into force in May 2024 and there will be no delay. It is therefore important that employers review their current tips arrangements and any changes that need to be made in in advance of next year to limit any risks of claims and costs to their business.

More information on what obligations the Act places on employers can be found in our article here.

If you require advice on the new legislation or would like us to assist you in putting in place a tips policy bespoke to your business or update your existing policy, please contact Claire Treacy on 0161 912 6149 or clairetreacy@kuits.com